Combining technology and work organization : an analysis of complementarity between IT and decentralization across firms of different size

This paper examines whether information technology (IT) and decentralized work organization are complementary only for large firms or also for smaller firms. Empirical evidence, which suggests complementarity between IT and decentralization, is mainly based on large firms. Using data from a sample of 3292 SMEs and of 598 larger firms from the manufacturing and service sector in Germany, I can observe firms’ IT intensity in terms of enterprise software and computer use and whether firms have a decentralized work organization. I find that SMEs with decentralized work practices tend to use IT more intensively. Moreover, for the sample of SMEs, IT and decentralized work organization are individually associated with higher productivity but the combination of IT and decentralization does not yield a productivity premium. Contrarily, for the sample of larger firms, the results show that the productivity of IT depends positively on decentralization. The findings suggest that combining IT and decentralized work organization seems to be a successful strategy only for larger firms

ICT and global sourcing - evidence for German manufacturing and service firms

This paper analyses the relevance of information and communication technologies (ICT) for firms’ robability of global sourcing of inputs. Using firm-level data from Germany in 2009, which include mainly small and medium-sized firms, the empirical analysis differentiates between the manufacturing and service firms. The results show some differences between the manufacturing and service sector. Controlling for various sources of firm heterogeneity, the global sourcing probability is increasing in the firms’ share of employees with Internet access in the manufacturing sector. E-commerceintensive firms are more likely to source inputs from abroad but generally, this relationship between e-commerce and global sourcing is only robust in services and much stronger there than in manufacturing. In both sectors, it is strongest in industries with higher upstream industry diversity. Moreover, labour productivity is positively linked to global sourcing. The findings support arguments for the importance of the Internet for global trade and they confirm the productivity advantage of importing in comparison to non-importing firms that is stated in the literature

Offshoring and ICT - evidence for German manufacturing and service firms

In this paper, I analyse the relationship between offshoring and ICT at the firm level differentiating between manufacturing and services. Using firm-level data from the manufacturing and service sector in Germany and a broad range of ICT measures, overall, the results reveal a positive relationship between offshoring and ICT. Thus, they support the argument that ICT might be relevant for offshoring. Controlling for other firm characteristics, software to coordinate and to manage the supply chain increases the offshoring probability, in particular for manufacturing firms. For service firms, also general enterprise software and e-commerce purchases from suppliers make offshoring more likely. Labour productivity and the realisation of a product innovation are significantly and positively linked to offshoring for firms from both sectors. This finding confirms the productivity advantage of offshoring in comparison to non-offshoring firms that is stated in the literature

Trade and technology: new evidence on the productivity sorting of firms

Using a unique German firm-level data set, we provide empirical evidence for a productivity sorting along two dimensions: international activity and technology choice. We consider domestic and exporting firms and measure technology choice by firms’ actual use of advanced information technology (IT). For manufacturing firms, the observed sorting pattern is consistent with recent theories of heterogeneous firms and technology choice: Only the relatively more productive ones among internationally active firms are also highly technology intensive. For service sector firms we find similar evidence, yet the results seem to depend on the trade cost of certain services. In general, recent theoretical advances regarding trade and technology adoption thus seem to better fit the manufacturing sector

BIG data - BIG gains? : empirical evidence on the link between big data analytics and innovation

This paper analyzes the relationship between firms’ use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms’ innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms’ investment in IT-specific skills. Subsequent analyses suggest that firms in the manufacturing and service sector rely on different data sources and data-related firm practices in order to reap the benefits of big data. Overall, the results support the view that big data analytics have the potential to enable innovation

ICT, complementary firm strategies and firm performance

This doctoral thesis analyses from different perspectives the relationship between information and communication technologies (ICT), complementary firm strategies and firm performance. One chapter examines the role of ICT and decentralized workplace organization for productivity. Two chapters analyse the association between firms' ICT use, international trade activities and productivity. The empirical analyses are based on data from firms located in Germany from the manufacturing or service sector

BIG data - BIG gains? : empirical evidence on the link between big data analytics and innovation

This paper analyzes the relationship between firms’ use of big data analytics and their innovative performance in terms of product innovations. Since big data technologies provide new data information practices, they create novel decision-making possibilities, which are widely believed to support firms’ innovation process. Applying German firm-level data within a knowledge production function framework we find suggestive evidence that big data analytics is a relevant determinant for the likelihood of a firm becoming a product innovator as well as for the market success of product innovations. These results hold for the manufacturing as well as for the service sector but are contingent on firms’ investment in IT-specific skills. Subsequent analyses suggest that firms in the manufacturing and service sector rely on different data sources and data-related firm practices in order to reap the benefits of big data. Overall, the results support the view that big data analytics have the potential to enable innovation

The division of tasks, offshoring and efficiency gains

Die stetige Weiterentwicklung von Informations- und Kommunikationstechnologien (IKT) sowie das Wirtschaftswachstum aufstrebender Länder wie China und Indien haben in den letzten Jahren nicht nur zu einer Intensivierung des internationalen Handels beigetragen. Vielmehr haben sie es Unternehmen erleichtert, ihre Aktivitäten in Länder außerhalb Europas auszulagern. Die Entscheidung der Auslagerung ins Ausland (Offshoring) basiert vor allem auf Kosten-Nutzen-Erwägungen und komparativen Vorteilen. Wirksame politische Maßnahmen erfordern ein tiefgreifendes Verständnis darüber, welche Aktivitäten ausgelagert werden und worin die Stärken der Europäischen Wissensgesellschaft liegen. Vor diesem Hintergrund beschäftigte sich ein vom SEEK-Forschungsprogramm finanziertes Projekt damit, welche Rollen der technologische Wandel und die Globalisierung für die Tätigkeit von Beschäftigten und die Wettbewerbsfähigkeit von Unternehmen einnehmen

Produktivität IT-basierter Dienstleistungen : wie kann man sie messen und steuern?

Informations- und Kommunikationstechnologien haben die Produktion in Unternehmen grundlegend verändert. IT-basierte Dienstleistungen stellen ein zentrales Bindeglied zwischen vielen anderen Unternehmensprozessen dar und leisten einen wichtigen Beitrag zur betrieblichen und gesamtwirtschaftlichen Produktivität. Welche Konzepte gibt es zur Messung und Steuerung dieser Produktivität und wie werden sie in der Praxis eingesetzt? Wie können sie weiterentwickelt werden? Diese Fragen standen im Mittelpunkt des Forschungsprojektes „Produktivität IT-basierter Dienstleistungen“, das das Zentrum für Europäische Wirtschaftsforschung (ZEW), Pierre Audoin Consultants GmbH (PAC) und die Universität Mannheim gemeinsam in den Jahren 2010 bis 2014 durchgeführt haben. Das Projekt wurde vom Bundesministerium für Bildung und Forschung (BMBF) im Rahmen des Programms „Innovationen mit Dienstleistungen“ gefördert. Ziel des Projektes war es, die Messung, die Bestimmungsfaktoren und die Steuerung der Produktivität IT-basierter Dienstleistungen aus verschiedenen Blickwinkeln zu untersuchen. Diese Blickwinkel lassen sich anhand der Frage erläutern, welche gesellschaftlichen Akteure ein Interesse haben, Produktivität IT-basierter Dienstleistungen zu messen

Combining technology and work organization : an analysis of complementarity between IT and decentralization across firms of different size

This paper examines whether information technology (IT) and decentralized work organization are complementary only for large firms or also for smaller firms. Empirical evidence, which suggests complementarity between IT and decentralization, is mainly based on large firms. Using data from a sample of 3292 SMEs and of 598 larger firms from the manufacturing and service sector in Germany, I can observe firms’ IT intensity in terms of enterprise software and computer use and whether firms have a decentralized work organization. I find that SMEs with decentralized work practices tend to use IT more intensively. Moreover, for the sample of SMEs, IT and decentralized work organization are individually associated with higher productivity but the combination of IT and decentralization does not yield a productivity premium. Contrarily, for the sample of larger firms, the results show that the productivity of IT depends positively on decentralization. The findings suggest that combining IT and decentralized work organization seems to be a successful strategy only for larger firms